Man arrested over multi-million-rand car licence fraud scheme in South Africa

The authorities have arrested a man believed to be involved in a cartel running a multi-million-rand vehicle fraud scheme in South Africa.

According to the Road Traffic Management Corporation (RTMC), the individual was engaged in fraud involving the licensing of motor vehicles.

The man allegedly assisted motorists by fraudulently renewing vehicle licences using the National Traffic Information System (NaTIS) from his private residence.

He was arrested in the town of Parys in the Free State on Tuesday evening during a joint intelligence-led operation. 

The arrest was carried out by a team comprised of members of the RTMC’s National Anti-Corruption unit and the South African Police Service’s Crime Intelligence, Tactical and Special Operations unit.

It also involved the Directorate for Priority Crime Investigation, better known as the Hawks, and cyber units from Crime Intelligence and the Hawks.

“It is alleged that the suspect is part of a syndicate operating in southern Gauteng and the Free State. The syndicate allegedly works with government officials across provinces to renew vehicle licences on NaTIS,” said the RTMC.

“The group allegedly targets Driver Licence Testing Centres (DLTCs) where biometric systems have not yet been installed.”

The RTMC stated that it has been working with police to investigate the matter for the past three years. It added that more arrests are imminent.

“The suspect, believed to be an IT specialist, implicated former transport officials, NaTIS users and active NaTIS users from different provinces, as well as the National Department of Transport. The arrest represents a breakthrough in investigations into the activities of this syndicate,” said the corporation.

What it costs to buy a fake driver’s licence in South Africa

The RTMC previously revealed that the fake driver’s licences are widespread in South Africa, typically costing anywhere from R3,500 to R14,000.

The entity noted that corruption is rampant at certain driver’s licence testing centres (DLTCs) across the country, and that staff are often complicit in the circulation of fake driver’s licence cards and vehicle licence discs.

It warned that criminal networks are involved with these DLTCs, working alongside driving examiners, traffic officers, and even members of the SAPS.

Vehicle licence discs are also popular, particularly among fleet managers in the public transport and freight logistics sectors, who only register a fraction of their total fleets.

Motselesi Juma, the RTMC’s programme management office and strategy general manager, said that fleet managers will only register 10 out of 100 vehicles and use duplicate discs for the remaining 90.

These issues are one of the primary reasons why the RTMC is looking to digitise South Africa’s DLTCs, as it would streamline the process for motorists while helping to crack down on fraud.

Services like the eNatis website already allow drivers to renew their car licence discs online and book appointments for other services.